Insurer Balks At NewPage Ch. 11 Plan Over Asbestos Policies

Law360, Wilmington (December 6, 2012, 8:07 PM EST) -- Liberty Mutual Insurance Co. asked a Delaware bankruptcy judge on Thursday to reject NewPage Corp.’s reorganization plan unless the paper manufacturer takes steps to preserve the insurer’s rights under certain asbestos liability policies.

Liberty Mutual said in an objection that the plan contains an “extraordinarily broad” exculpation provision that could be read to release NewPage from an obligation to reimburse the insurer for defense and indemnity of asbestos claims.

In 2005, NewPage assumed liabilities for asbestos-related claims at mills it purchased from MeadWestvaco Corp. for $2...
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